Asked by Swakena Jackson on Jul 14, 2024
Verified
A sweater sells for $130.50. Overhead expenses are 25% of cost and operating profit is 20% of cost. What rate of markdown will price the sweater at the break-even price?
Break-even Price
The price level at which revenues equal costs, resulting in neither profit nor loss.
Overhead Expenses
Costs not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.
Operating Profit
Earnings of a business before interest and taxes are deducted.
- Master and use multiple percentage calculations in retail pricing, covering markdowns, markups, and discounts.
- Ascertain the cost at which retail items neither generate profit nor incur loss.
Verified Answer
MR
Learning Objectives
- Master and use multiple percentage calculations in retail pricing, covering markdowns, markups, and discounts.
- Ascertain the cost at which retail items neither generate profit nor incur loss.
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